German lawsuit could impact apparel supply chains

DORTMUND - Four people affected by the Ali Enterprises apparel factory fire in Pakistan, which killed 260 people in 2012, have filed a lawsuit at the Regional Court in Dortmund against KiK, the German discount retailer which was the main buyer from the factory at the time of the tragedy. The European Centre for Constitutional and Human Rights (ECCHR) is one of several organisations backing the action, where each claimant is seeking 30,000 Euros compensation in a move which – if successful – could have ramifications for the global apparel manufacturing industry. The ECCHR claims the case against KiK should, "make it clear that transnational corporations' responsibilities also extend to the working conditions in their subsidiary and supplier companies abroad."